The world prices for sugar broke a four-year record against the background of growing demand for alcohol. According to Bloomberg, the cost has reached a maximum on the background of the pressure on the market of the world energy crisis. Because of this, the world’s leading manufacturers began to process more sugar cane in ethanol, which can serve as a biofuel for cars in the form of a mixture with gasoline or with diesel fuel.
According to the agency estimates, white sugar futures on the ICE exchange rose by 1.2 percent, and in general, from the beginning of the year, the price rose by 22 percent. Moreover, a sharp increase began in August, when it became clear that frosts in Brazil, which is the largest exporter, risk undermining the production and supply of raw materials. “The domestic ethanol market and the international sugar market are fighting for the Brazilian cane,” commented the head of the South American food research and agribusiness Rabobank Andy Duff.
The second largest exporter – India – plans that by 2025 Ethanol amounted to 20 percent of fuel mixtures for cars. A similar strategy writes Bloomberg, risks lead to a drop in the production of Sugara Rafinal next year.
As analyst GROUP Sopex John Stansfield, and India, and Brazil will be forced to produce more ethanol from sugar cane in the next 12 months due to increased fuel prices. According to him, it will contribute to the further growth of prices for sugar.